This is more of a question because I have no idea how it works. Once the bank foreclose on a property, how long does the owners have to move out and will they be given notice? I have had this question asked of me and I do not know what the procedures are and estimated how long after the sale will the owners be put out?
I would like to have this information out on AR for the people that might find themselves in that situation.
Please let me know what you know about this part of the foreclosure process.
Rosemary
Each county is a little different. What I've seen in California is as short as 10 days and up to 30 days to move out. The sheriff that serves the eviction notices is the one who has confirmed this in different counties.
This is for California
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.
Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one (1) year to redeem the property.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.
The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.
The borrower has up until five days before the foreclosure sale to cure the default and stop the process.
The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale.
Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption. the time frame for them to be out is about 16-21 days.
Bernie ~ thank you for the details. The last sentence says it is about 16-21 days time frame for them to get out. My clients have been there since October 10th (trustee sale date) and it is now January 13th, so they had some extra time.
Rosemary
The law is very clear as to the time afforded....reality however, is that, it is taking longer than anyone anticipated. If any borrower is to take that chance, they should be prepared to leave with no notice if they've been there that long.
I have seen them as soon as 10 days -30 Days. I have seen the banks have paperwork ready at auction and file at the court that morning and that begins eviction process. If someone else buys the property at the auction other than the bank, they usually give them about 2 weeks to remove themselves from the property, then start eviction process if not out.
Hey Rosemary,
In the OC one client had over 30-60 days while a personal friend had the same. While on the other side I've seen one served ASAP. But depending on the area it seems to vary on them... more or less when they feel like processing it.
And I know this is somewhat off the topic but I've worked with several files that took longer than a year but that's solely on the bank... LOL I thought that was funny...
-Thanks Bernie G. for the info... I was told by a telephone operator from the department that serves the notice that the sherrif does it in under 30 days. I did know know there was an exact time frame.
Does anyone know how long in Virgina...
My forclosure sale date ...i just got informed...is in 3 weeks. Do I have to be out by the sale date? If not when??
HELP!!
Does anyone know in Arizona what the time frame after the sale date is to leave the property before the eviction starts?
Tony, In Arizona, as I suspect it is in many other states, the answer is: "It depends". In Arizona, most "mortgages" are really Deeds of Trust, so that instead of a "Sheriff's Sale", you have a "Trustee's Sale". There is no right of redemption in a Trustee's sale. So it depends upon whether the property is sold at the Trustee's sale to an entitiy other than the Lender or winds up owned by the Lender. In either case, the new owner has the option of negotiating with you or filing an action for Forcible Detainer (Eviction). In Arizona, only the actual Owner, or an Attorney for the Owner, may file an action for Forcible Detainer. Depending on how busy the Attorney is, and how busy the local court is, the process used to take 2 to 4 weeks. It is my understanding that the courts and the Sheriff's are operating under new rules due to the overwhelming number of foreclosures, and the Sheriff's are now showing up with court orders for eviction in a matter of days. The Sheriff can arrest you for disobeying the order, so my advice would be to plan to move as soon as possible.
It sounds that it "depends" is the answer.
Depends on the laws in your state. Depends on what type of instrument is being foreclosed. Depends on how the laws are enforced by the local authorities....
I think the bottom line here is that we're all very unsure of the process because the rules change almost daily. I've been in lending for over 6 years and have never known as little about the market as I do now, and I learn several new things every day to try and keep up for my clients.
The foreclosure laws have just changed, and I think over the next few years as we continue this stage of our Real Estate lives, we'll see the process slow some and change. Many homeowners stay in their homes for much longer than the 7 months average from the 1st mortgage late.
I certainly post information as I learn it on my blog and would be happy to give anyone information who needs it.
Feel free to contact me anytime.
California is a non-recourse state. This means the lender can not make a deficiency claim against the homeowner if the lender sells the home for less than what is owed. In several states they can. Foreclosure guidelines vary from state to state and in some states vary from county to county.
Does anyone know the rules or how it works in NY Nassau County
My house was foreclosed on I just got 10 day notice from the bank who took ownership (there was no buyer at sale) do they have to evict me if I don't leave in the 10 days or can the sheriff show up day 11 - I am hoping to get thru the holidays I have been all over the place looking for a rental for us but with the bad credit now and the holidays here I am having a hell of a time
Any help would be appreciated!
www.lispendensbytown.com
good site with tons of links.